Ocean Freight Comments
Transportation and Export Report: Jay O’Neil, O’Neil Commodity Consulting:World ocean freight markets continue to feel soft. Cargo demand has not picked up sufficiently to soak up the surplus in vessel freight. Markets are still waiting for the needed uptick in world economic conditions that will be the true driver of demand. South American Grain and Soybean vessel line ups are growing and more ships are ballasting in that direction.
Though the markets (especially the Baltic indices) are a little weaker this week, I believe the lower rates indicated last week still reflect the current situation fairly well. I’m therefore leaving most rates unchanged until I see better fixture volumes.
Below is a recent history of freight values for Capesize vessels of iron ore from Western Australia to China:
The charts below represent January-December 2013 and January-December 2012 annual totals versus January 2014 year-to-date container shipments for Philippines.
